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Tuesday, April 30, 2024

Many ACT businesses still recovering from 2021 lockdown

The 2021 lockdown officially ended in mid-October – but many local businesses are still recovering 10 months later, according to Tom Adam, president of the Phillip Business Community.

“Honestly, we’re still in the pandemic. The lockdown was 13-plus weeks for business, but the impacts are still being felt now,” he said.

Most businesses in the area, he said, are down 10 to 20 per cent on revenue. Some businesses that rely heavily on government contracts, he said, are “feeling the pinch”: office activity has been reduced, so they print less, and hold fewer morning teas and social events. That, in turn, affects local businesses that supply those sorts of products and services.

“Overall, the sentiment is that (with the exception of the lawyers, real estate agents, accountants, and any construction workers) the rest of Phillip is feeling the slow down.

“Business owners definitely have their heads down and bums up trying to work through it. Business owners are generally optimists; however, lots of them are tired, exhausted, and my own circumstances feel that we’re back in 2019 levels trying to rebuild.”

The 2021 lockdown was much worse than the 2020 one, Mr Adam believes.

“The second lockdown saw us cut off from support the moment the lockdown lifted. At least with the first lockdown, we had three-plus months of support to help us get off the ground and back on our knees.”

Mr Adam blames what he calls the ACT Government’s “anti-business approach”.

Government, he argues, “provided less support (and more hoops to jump through)”. Having less of a connection between employees’ support payments and the business meant a lot of people worked even less than in the first lockdown. Many businesses, however, still have to pay PAYG / GST / superannuation even if they are making a loss.

“Many businesses are still paying off debts with the ATO, and – before the cynical non-business owners have a crack – what people forget is that ‘profit’ is normally the business owner’s income. So, if you’re not making as much as before, your costs have increased, and you’re paying off a tax debt with the ATO. Your own income is reduced further, which has an impact on people’s personal lives.” 

Coupled with omicron waves, many small businesses whose savings were wiped out in 2020 are still affected today, Mr Adam says.

“Many small business owners have commented that just two to four more weeks of support would have changed the world for them …

“The reality was that the public servants running the programs wanted to do more, but they had their hands tied by a government more concerned about the bottom line (ha! nearly a decade of deficit, and we can’t ask for a few more weeks of support) than they were about the mental, physical, and financial health of Canberrans who happen to own business.”

Mr Adam urged Chief Minister Andrew Barr and business minister Tara Cheyne to encourage more Canberrans to buy local. “Don’t just do some basic social media posts, get on TV, get into the papers, get on radio, get out to events in public, and say to Canberra: ‘Go and buy local! Local businesses employ more than 35 per cent of Canberra’s employees, and they’re feeling it still. Help them through the winter, and they’ll be here for decades to come’.”

To business owners, Mr Adam said: “I feel your pain; I lie awake at night, trying to figure out how I’ll make ends meet for myself and my family. But! It’s really important that you invest time in preparing for spring. Get to know the businesses around you, and chat with them about partnerships. Share your neighbouring businesses’ offers to your email list, and ask them to do the same. Remember that your customers use similar services to potential customers; there is so much potential. AND, a big AND, you’ve made it this far – believe that you can continue and find a way through it.”

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